North Imenti MP Rahim Dawood has urged President William Ruto to order an audit on Hustlers Fund in a bid to unravel how KSh 6 billion was lost.
The Hustler Fund, a flagship government initiative aimed at empowering low income Kenyans through accessible credit, is now grappling with a massive KSh 6 billion loss, money loaned out but never recovered.
According to the State Department for Micro, Small and Medium Enterprises (MSMEs), the lost amount stems from loans taken out by millions of Kenyans in late 2022, many of whom have since defaulted and disappeared from the radar.
Appearing before the National Assembly’s Committee on Trade, Industry and Cooperatives, MSMEs Principal Secretary Susan Mang’eni disclosed that about 10 million Kenyans borrowed small amounts, averaging KSh 500 each, between November and December 2022, but never repaid.
MP Dawood said he is a member of a committee on special funds and when they were conducting an audit they called the PS.
He said they asked him the numbers of people they had given the funds and those who had failed to pay but he has not been able to avail the details up to now.
“Recently the same PS said that KSh 6 billion of Hustlers Funds has not been paid. But I would like to say that it is not possible that such a huge amount has been lost and they have failed to account for the same,” he said.
He urged residents and especially beneficiaries of government programs such as Uwezo Fund to be writing to the next of kin to ensure that in case of death their relatives benefit from property or funds.
“Residents should pick a form called “payable on death” in their banks and fill it to avoid going to court, which is a long process as one has to wait for six months or one year,” Dawood said.
On CDF, he said the National Assembly passed the NGCDF but the bill is yet to go through and is awaiting approval by the Senate.
“We even allocated senators some funds to do their oversight. If they fail to pass the National Government Constituency Development Fund they should be blamed,” he said.
On Gakoromone market, he said the facility will be given KSh 800 million for the renovation.
He urged Water Cabinet Secretary Erick Mugaa to speed up relocation of Gakoromone sewerage so as more traders can be accommodated in the space.
He spoke on Thursday at the Constituency Development Fund offices in Meru town when he gave out Uwezo funds cheques worth KSh 6 million.
Dawood urged groups not to give up and continue applying for the Uwezo fund that is interest free and one starts to pay after six months or one year.
“There are groups that started with as low as KSh 70,000 but now they are getting as much as KSh.500,000,” Dawood said.
He said they began with KSh 16 million and have been able to give out KSh 62 million in his constituency since he began giving Uwezo funds in 2013.
